Client Segmentation enables the concentration of your valuable and scarce resources to grow your business.
What is Client Segmentation? It is the subdivision of a market into discrete client groups that share similar characteristics.
Here are 5 reasons why successful companies adopt client segmentation:
- Provides Focus: It provides a powerful means to identify client needs that you are either currently serving or plan to serve.
- Resource Allocation: This becomes the principal basis for allocating resources for all client facing investments – product development, marketing and service delivery.
- New Offers: Companies that identify and service segments can outperform the competition by developing uniquely appealing products and services.
- Increase Profits: It enables a company to customise its offerings to segments that are the most profitable and serve them with a distinct competitive advantage.
- Maximise Value: Prioritising helps companies develop marketing campaigns and pricing strategies to extract maximum value from these chosen segments.
Segmenting your market: Case Study from Mcdonalds
Less is more
There are many segments to choose from, but only a few that your specific clients fit into. For this reason, selecting segments must be done with precision to reap the rewards when executing your value proposition, to grow your business.